SBI

The largest bank of India did not disappoint as numbers came in very on the expected lines. The Bank ended current Q1 with a muted 3% (YoY) rise in net profit at Rs.3349 crore but the good news here was that this was the first rise in profits after 6 quarters. This rise in bottomline was muted on account of huge 72% rise in provisioning for bad loans at Rs.3,903 crore v/s Rs.2266 crore in previous Q1. Sequentially though, this has come down from Rs.5891 crore. Provision coverage ratio was at 62.7%.

In terms of asset quality, it was stable during the quarter with Gross NPA improving though marginally rising on the net. Gross NPA fell 5 bps (QoQ) and down 66 bos (YoY) at 4.9% while Net NPA rose 9 bps (QoQ) and fell 17 bps (YoY) at 2.66%. On the other hand, slippages rose from Rs.7947 crore to Rs.9932 crore and fresh restructuring also came down from Rs.7636 crore to Rs.3598 crore. It has written off loans to the tune of Rs.6556 crore in current Q1.

The company’s NII rose 15% (YoY) at Rs.13,252 crore and NIM rose from 3.49% to 3.54% (QoQ). Other income, which is non-interest income was a dampener and it fell 5% (YoY) at Rs.4252 crore. The 34% rise in tax outgo also went on to eat away some of the profit. In terms of business, advances rose 13% (YoY) at Rs.11.989 lakh crore and deposits rose 13% at Rs.14 lakh crore.